Citigroup Ends Shared Assignment of Top Corporate Banking Execs

Citigroup Inc. said Tuesday it will end the power-sharing arrangement between two of its star executives, Victor Menezes and Michael Carpenter.

Mr. Menezes will be assigned to manage the company's corporate and consumer banking activities in emerging markets, and Mr. Carpenter will solely manage the Salomon Smith Barney unit and global relationship banking. They previously were co-heads of global corporate and investment banking.

The move came just days after Citi announced the promotion of Robert I. Lipp to vice chairman and member of the office of the chairman. Mr. Lipp will continue to run the company's global consumer banking operations but adds oversight of technology initiatives and administrative staff as well as the title "cross-selling czar."

Observers said the moves seemed appropriate in light of the departure of John S. Reed, who retired as co-chief executive officer in April, ending an unusual power sharing arrangement with Sanford I. Weill that had grown increasingly tense.

Mr. Menezes and Mr. Carpenter are each seen as potential successors to Mr. Weill, though the chairman and chief executive officer recently brushed aside questions about whether he was considering naming a successor.

In a statement Tuesday, Mr. Weill portrayed the move as a "natural next step."

"It highlights the need for them to create delineated responsibility and accountability," said Bradley Ball, an analyst at Credit Suisse First Boston.

Mr. Menezes, who joined the former Citicorp in 1972 in its corporate banking group in India, has a resume that includes management experience in emerging markets, corporate, and consumer banking, as well as a stint as chief financial officer.

Mr. Carpenter has management experience in insurance and investment banking, including a stint as chief executive of the now-defunct Kidder Peabody & Co.